Credit Agreements

LUMINANCE DILIGENCE USE CASE

Indeed, even in the most diligent manual review, there are the latent risks of missing key provisions due to miscommunication,

overburdening team members or simply trying to meet urgent deadlines. Faced with the challenge of reviewing a substantial amount

documentation to a tight deadline, many lawyers are turning to Luminance to assist them in completing a full and thorough review in

an expedited manner. Luminance uses a unique blend of cutting edge supervised and unsupervised machine learning developed by

mathematicians from Cambridge University which reads and forms an understanding of all documents within a dataset. Luminance

is deployed via the cloud and, unlike legacy technologies that require lengthy set-up or pre-programming, Luminance is ready to use

almost immediately; in fact, most lawyers begin their first review with Luminance within a matter of hours.

Luminance analyses documents, tagging key information such as contract type, dates, parties, governing law and clauses. Luminance

also flags anomalies to the lawyer so that they can prioritise potential risks at the beginning of the review. Luminance displays this key

information across a number of graphic, interactive widgets on the home screen, allowing lawyers to quickly filter to documents that

are pertinent to a Credit Agreement review, disregarding those that are not. Luminance dramatically increases the speed of lawyers’

review, placing legal teams in the same position on day one of their review as they would be after weeks of manual review methods.

Luminance comes with a range of collaboration and project management tools to ensure a seamless review across offices or home

working locations, whilst also preventing duplication of valuable work effort. Features such as task creation, automatic task allocation

and granular progress tracking allow the whole team to see at a glance how the project is going. Whilst working in their allotted tasks,

users can apply notes to flag clauses that might have implications for the transfer; where users want to apply this note throughout

the data set, they can use the bulk notes feature and all similarly-worded clauses will be tagged with the note. When the review is

complete, the legal team can quickly generate a report of their findings which automatically captures all work product, which can be

used internally or externally depending on the particular requirements.

Lawyers who are tasked with reviewing a Credit Agreement

frequently need to understand a document that is hundreds

of pages in length, often to very strict time constraints.

Indeed, companies often require wholesale Credit Agreement

reviews, whereby all Credit Agreements – both executed

and unexecuted – are examined in depth to understand the

implications of the provisions within them. In this situation,

undertaking a full and thorough review of the document set

using solely manual methods is commonly unfeasible given

cost and resource constraints.

After the documents have been uploaded into Luminance, the workflow for conducting the review comprises 6 key steps:

1. Navigate to new Credit Agreements

2. Get a comprehensive overview of key Clauses and Data Points in the documents

3. Use AI assisted search functionality to identify key provisions

4. Apply Clause Tags to provisions which may require amendment or (re)negotiation

5. Make a Bulk Note with a Note Category denoting the need for amendments or (re)negotiation

6. Generate a report summarising your analysis and recommendations

Luminance Project GuideCredit Agreements

ScenarioFirms are required to review the provisions included in Credit Agreements (both executed and non-executed) for areas that may

require review, amendment or negotiation. As firms are on the receiving end of multiple Credit Agreements each day (each up to

600 pages long), it is vital that the review process is as detailed, efficient and cost-effective as possible.

Given the time pressure and the volume of documents under review, you will be deploying Luminance’s market-leading artificial

intelligence technology to enhance the team’s ability to complete this review as it is the only technology that can adapt to firm’s

interpretations and the timeframes required.

Review Process

Key Benefits

Achieve significant time savings

Achieve a more comprehensive review with enhanced confidence in the results

Quickly identify key provisions

Step 1: Navigate to new Credit Agreements

Luminance’s Insight Visualise screen provides lawyers with a holistic

overview of any set of contracts and the ability to drill down into

specific elements of these documents. From the Insight Visualise

screen, users can filter to Credit or Loan Agreements ‘Uploaded

Since’ a certain date via the Filter Bar.be deleted at this stage.

Step 2: Get a comprehensive overview of key Clauses and Data Points

The Insight Details screen can be customised to display only the

most relevant information to the review at hand (or based on user

preference) via the settings cog located at the bottom left-hand corner

of the Insight Details screen. From the Insight Details screen, users can

expand the columns (by clicking ) in order to gain an overview of the

information contained in each of the documents. This view allows for

the rapid review of each element, across multiple contracts and all from

one screen.the relevant outside counsel. If most of the documents are

in English, assign multiple reviewers to the ‘English documents’ task.

Hint: Enable the “Search” and “Notes” columns, as well as any relevant clauses to get a comprehensive overview.

Step 3: Use AI assisted search functionality to identify key provisions

To quickly locate relevant provisions which may not been automatically

identified, simply type specific keywords or phrases into the filter bar. For

example, type “LIBOR” or “interbank” to identify the presence of these

words across all of the documents.

Luminance will search across the documents filtered to (or the entire

project if desired) and present to the user all instances of where those

keywords appear in the ‘Search’ column in the Insight Details screen.

This allows you to rapidly review each search result, negating the need

to open each individual document. All typical search techniques can be

applied within the Luminance filter bar, with advanced search techniques

available from the funnel icon to the left of the filter bar.

Step 4: Apply Clause Tags to provisions which may require amendment or (re)negotiation

Once you have identified the clause you are looking for via the Insight

Details screen, click on the page number to the right of the clause/

search result snippet to be taken to the relevant paragraph in the

document itself. When you add a tag to the clause, Luminance will

suggest additional clauses within the project that are either (a) identical;

or (b) potentially conceptually similar, giving you the choice of applying

a Clause Tag to multiple clauses simultaneously. By reviewing these

‘similar paragraph suggestions’, the user can speed up the clause

identification process significantly whilst also providing Luminance with

new examples (both positive and negative) to learn from.

Please contact your Luminance Account Manager, or customer@luminance.com if you have further questions

Step 5: Make a Bulk Note with a Note Category denoting the needfor amendments or (re)negotiation

After identifying clauses that need to be amended or (re)negotiated,

users can add Bulk Notes (i.e. notes to multiple clauses at once) detailing

their interpretation/analysis of the clause, negotiation instructions or

amendment suggestions. Simply click on the clause in question and

click on the circular pop-up to the right-hand side (screenshot below)

to create a singular or bulk note. Users are also able to add a Note

Category (e.g. “Amendments” or “Negotiate”) which are typically used

to organise a user or teams’ notes, either for reporting purposes or so

that colleagues can follow the progress of the review at a glance from

the central Notes screen.

Hint: Utilise the Bulk Note function to apply your comments on patterns of language which are identical or statistically very similar.

Step 6: Generate a report summarising your analysis and recommendations

To generate a report that summarises the team’s comments and suggested amendments,

first filter to the relevant set of documents (e.g. Loan Agreements) and then select

the information you wish to include in the report (e.g. Notes with the Note Category

“Amendments”) in your preferred Excel format. You will have the option of previewing

a section of the report before downloading. Reports are stored, and can be refreshed

and downloaded from, the Reports screen (see left-hand side pane). Custom coding of

reports to match your house-style is available to Luminance customers upon request.

Hint: Enable the “Search” and “Notes” columns, as well as any relevant clauses to get a comprehensive overview.